Download or read book Venture Capital Syndicate Formation Prior IPO written by Zeina Khalil Mehdi and published by . This book was released on 2011 with total page 108 pages. Available in PDF, EPUB and Kindle. Book excerpt: This research paper will examine the formation of syndicates in Venture Capital (VC) investments for 2477 US VC-backed IPOs that took place between 1999 and 2006. Previous studies have discussed the perceived benefits of syndications, the potential costs associated with it and the interrelationships between members of the syndication network. However, there is a gap in the literature with regards to assessing the impact of timing with the syndicate formation across rounds on the IPO. This paper examines the trend in syndicate formation prior to IPO and tests how the various syndicate formation behaviors (early versus late rounds syndicate concentration) impact the IPO underpricing and the premium.
Download or read book The Design of Syndicates in Venture Capital written by Giacinta Cestone and published by Fundacion BBVA. This book was released on 2006 with total page 31 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Structuring Venture Capital Private Equity and Entrepreneurial Transactions written by Jack S. Levin and published by Aspen Publishers. This book was released on 1998 with total page 988 pages. Available in PDF, EPUB and Kindle. Book excerpt: Here at last is one-step-at-a-time, start-to-finish structural guidance For The following common business transactions: Venture capital financing New business start-ups Brains-and-money deals Growth-equity investments Leveraged and management buyouts Industry consolidations Troubled company workouts and reorganizations Going public Selling a business Forming a private equity fund Guided by Levin's dynamic, transaction-by-transaction approach, you'll make the tax, legal, and economic structuring consequences of every deal benefit your client every time. In this extraordinary hands-on resource by the most sought-after authority in the field, you'll see exactly how to: Distribute the tax burden in your client's favor Maximize returns on successful transactions Control future rights to exit a profitable investment...and turn every transaction into a winning venture!.
Download or read book The Role of Venture Capital Syndication in Value Creation for Entrepreneurial Firms written by Xuan Tian and published by . This book was released on 2014 with total page 46 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper provides evidence that venture capital (VC) syndication creates value for entrepreneurial firms in two dimensions. First, VC syndication creates product market value for their portfolio firms. Specifically, VC syndicates invest significant amounts in younger firms, in earlier financing rounds, and in early stage firms. Further, VC syndicates nurture innovation of their portfolio firms and help them achieve better post-IPO operating performance. Second, VC syndication creates financial market value for their portfolio firms. Specifically, VC syndicate-backed firms are more likely to have a successful exit, enjoy a lower initial public offering (IPO) underpricing, and receive a higher IPO market valuation. The findings are robust to a variety of alternative syndication measures, subsamples, econometric models, and controlling for endogeneity in VC syndication.
Download or read book Guide to Venture Capital and Private Equity Attorneys written by and published by . This book was released on 2003 with total page 122 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Venture Capital and Initial Public Offering written by Weicheng Wang and published by . This book was released on 2010 with total page 99 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Venture Capital and Public Offering Negotiation written by and published by . This book was released on 1983 with total page 584 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Venture Capital Backing Investor Attention and Initial Public Offerings written by Thomas J. Chemmanur and published by . This book was released on 2018 with total page 63 pages. Available in PDF, EPUB and Kindle. Book excerpt: We hypothesize that VC-backing garners greater “investor attention” (Merton (1987)) for IPOs, allowing IPO underwriters to perform two information-related roles more efficiently during the book-building and road-show process: information dissemination, where the lead underwriter disseminates noisy information about various aspects of the IPO firm to institutional investors; and information extraction, where the lead underwriter extracts information useful in pricing the IPO firm equity from institutional investors. Using pre-IPO media coverage as a proxy, we show empirically that VC-backed firm IPOs indeed obtain greater investor attention, causally yielding them more favorable IPO characteristics such as higher IPO and secondary market valuations.
Download or read book Venture capitalist equity alliance ownership participation in pre IPO firms written by Maria Lorena Gutierrez B. and published by . This book was released on 2003 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Birds of a Feather or Celebrating Differences The Formation and Impact of Venture Capital Syndication written by Qianqian Du and published by . This book was released on 2009 with total page 54 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper examines venture capitalists' preferences for syndication partners. Do venture capital firms prefer partners that are similar to or different from them? How do venture capitalists' preferences for partners affect the performance of the syndicated investments? Will the choice of syndication partners have any impact on the venture capital firms themselves? Heterogeneity among syndication partners may increase transaction costs, but offers syndication partners valuable learning opportunities in the long run, suggesting a tradeoff between the short-term costs versus long-term benefits. Using data on U.S. venture capital investments, this paper shows that venture capital firms are less likely to syndicate with partners who are different from them. The preferences for syndication partners, however, have different implications for the portfolio companies and the venture capital firms. Companies funded by heterogeneous syndicates are less likely to go public or be acquired by other companies. However, venture capital firms that co-invest with more heterogeneous partners are more likely to survive. The paper develops a new method for empirically examining the formation of syndication among multiple firms. It also addresses issues of endogeneity.
Download or read book Competition Syndication and Entry in the Venture Capital Market written by Suting Hong and published by . This book was released on 2013 with total page 54 pages. Available in PDF, EPUB and Kindle. Book excerpt: There are two ways for a venture capital (VC) firm to enter a new market: initiate a new deal or form a syndicate with an incumbent. Both types of entry are extensively observed in the data. In this paper, I examine (i) the causes of syndication between entrant and incumbent VC firms, (ii) the impact of entry on VC contract terms and survival rates of VC-backed start-up companies, and (iii) the effect of syndication between entrant and incumbent VC firms on the competition in the VC market and the outcomes of incumbent-backed ventures. By developing a theoretical model featuring endogenous matching and coalition formation in the VC market, I show that an incumbent VC firm may strategically form syndicates with entrants to maintain its bargaining power. Furthermore, an incumbent VC firm is less likely to syndicate with entrants as the incumbent's expertise increases. I find that entry increases the likelihood of survival for incumbent-backed start-up companies while syndication between entrants and incumbents dampens the competitive effect of entry. Using a data set of VC-backed investments in the U.S. between year 1990 and 2006, I find empirical evidence that is consistent with the theoretical predictions. The estimation results remain robust after I control for the endogeneity of entry and syndication.
Download or read book A Study of the Correlation Between Pre IPO Venture Funds and Founder Characteristics with High tech Firm Growth written by Safwan Zaheer and published by . This book was released on 2008 with total page 196 pages. Available in PDF, EPUB and Kindle. Book excerpt: (cont.) As far as the prior relevant industry experience of the founder is concerned, an average experience of 6+ years was found to be positively correlated with firm growth. Even though, no correlation was found between founder education and firm growth; founders having a masters or a PhD degree outperformed those with a bachelor's or even a high-school degree. The results serve to provide contextual information to managers, investors, and academics who wish to consider their firm's growth potential or in general invest in high-tech firms. In addition, the study adds to the rich literature on the impact of pre-IPO venture funds and founder characteristics on firm success.
Download or read book The Formation and Outcome of Corporate Venture Capital Investments Between Incumbents and New Ventures written by Ji Youn Kim and published by . This book was released on 2014 with total page 123 pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation examines the formation and outcomes of interorganizational partnerships between industry incumbents and new ventures. New ventures are often a powerful competitive force threatening established firms, but incumbent firms can also benefit from collaborating with them and acquiring external knowledge. Although there has been significant research on the topic, relatively little is known about relational factors that influence who partners with whom and how. Also, strategic benefits of partnering with new ventures for incumbent firm's learning have not been scrutinized; in particular, whether making such formal arrangements is the best way for incumbents to attain knowledge from new ventures, and whether there are any alternative learning mechanisms available have not been examined. I address these issues in the context of corporate venture capital (CVC) investments, typically the first relationships formed between new ventures and incumbent firms. First, I examined how new ventures' social ties with potential corporate investors based on founders' employment or prior co-investments of the lead venture capital firm influence the formation of CVC investment deals. Second, I examined the relative effects of multiple mechanisms including CVC investments on incumbent firm learning from new ventures. I find that 1) the formation of investment relationships between new ventures and incumbents is a joint function of social ties between them, an incumbent firm's integrity regarding the intellectual property of others, and technological links between them; 2) CVC investments have little independent effect on incumbent firm learning from new ventures when alternative knowledge transfer mechanisms such as hiring inventors from new ventures, prior knowledge spillover links and outbound inventor mobility are simultaneously accounted for.
Download or read book Social Ties and IPO Outcomes written by John Cooney and published by . This book was released on 2019 with total page 47 pages. Available in PDF, EPUB and Kindle. Book excerpt: We examine the role of social ties in IPO underwriting syndicate formation and find that an investment bank is more likely to be included in the underwriting syndicate when it is connected to the IPO firm through interpersonal social ties between the respective executives and directors. These social ties generate better outcomes, consistent with a quid pro quo arrangement between the respective parties. The investment bank benefits by receiving higher compensation, a more senior role in the IPO, and greater share allocations. For the IPO firm, the presence of social ties between the IPO issuer and the chosen underwriters is associated with net wealth gains for its pre-IPO shareholders.
Download or read book VC written by Tom Nicholas and published by Harvard University Press. This book was released on 2019-06-03 with total page 401 pages. Available in PDF, EPUB and Kindle. Book excerpt: From nineteenth-century whaling to a multitude of firms pursuing entrepreneurial finance today, venture finance reflects a deep-seated tradition in the deployment of risk capital in the United States. Tom Nicholas’s history of the venture capital industry offers a roller coaster ride through America’s ongoing pursuit of financial gain.
Download or read book Venture Capital and the Finance of Innovation written by Andrew Metrick and published by John Wiley and Sons. This book was released on 2011-06-15 with total page 1153 pages. Available in PDF, EPUB and Kindle. Book excerpt: This useful guide walks venture capitalists through the principles of finance and the financial models that underlie venture capital decisions. It presents a new unified treatment of investment decision making and mark-to-market valuation. The discussions of risk-return and cost-of-capital calculations have been updated with the latest information. The most current industry data is included to demonstrate large changes in venture capital investments since 1999. The coverage of the real-options methodology has also been streamlined and includes new connections to venture capital valuation. In addition, venture capitalists will find revised information on the reality-check valuation model to allow for greater flexibility in growth assumptions.
Download or read book Venture Deals written by Brad Feld and published by John Wiley & Sons. This book was released on 2011-07-05 with total page 245 pages. Available in PDF, EPUB and Kindle. Book excerpt: An engaging guide to excelling in today's venture capital arena Beginning in 2005, Brad Feld and Jason Mendelson, managing directors at Foundry Group, wrote a long series of blog posts describing all the parts of a typical venture capital Term Sheet: a document which outlines key financial and other terms of a proposed investment. Since this time, they've seen the series used as the basis for a number of college courses, and have been thanked by thousands of people who have used the information to gain a better understanding of the venture capital field. Drawn from the past work Feld and Mendelson have written about in their blog and augmented with newer material, Venture Capital Financings puts this discipline in perspective and lays out the strategies that allow entrepreneurs to excel in their start-up companies. Page by page, this book discusses all facets of the venture capital fundraising process. Along the way, Feld and Mendelson touch on everything from how valuations are set to what externalities venture capitalists face that factor into entrepreneurs' businesses. Includes a breakdown analysis of the mechanics of a Term Sheet and the tactics needed to negotiate Details the different stages of the venture capital process, from starting a venture and seeing it through to the later stages Explores the entire venture capital ecosystem including those who invest in venture capitalist Contain standard documents that are used in these transactions Written by two highly regarded experts in the world of venture capital The venture capital arena is a complex and competitive place, but with this book as your guide, you'll discover what it takes to make your way through it.
